Will sterling budge for the Budget on Wednesday?

A late surge for sterling saw the currency recover some lost ground against the euro on Friday, and finish the week at a fresh one-month high against the US dollar. Sterling investors can pause to draw breath at the start to the week, with no major economic data set to be released from the UK until Wednesday.

Labour data is set to be released on Wednesday and, with unemployment remaining steady at an eight-year low of 5.1%, it is average earnings data that will provide the main focus. Later in the day, investors will turn their attention to Chancellor George Osborne, who will announce the Government’s annual budget, and possible offer some further insight into the Government’s views on Brexit.

There will be no rest on Thursday, with the release of the Bank of England (BoE)’s latest interest rate decision, and the minutes from this meeting. This will reveal both the voting pattern of monetary policy committee members, and their thoughts on the direction that future monetary policy should be taking. As such, we could see significant sterling movement in the wake of this release.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Final inflation figures for Eurozone

Friday was a quieter end to the week for the euro after having a busy day on Thursday. The euro, after making significant gains against the US dollar and the pound on Thursday, was under pressure on Friday as the European Central Bank (ECB)’s most recent policy statement finally hit the single currency and it lost most the gained ground against sterling. Final Consumer Price Index (CPI) figures from Germany came out as expected. These were lower than previously, reinforcing the need for Thursday’s interest rate cut and additional quantitative easing.

This week is certainly not expected to be as busy as last, but on Thursday final Eurozone inflation figures are released. These are forecast to improve dramatically, from -1.4% up to 0.1%. Given the state of the Eurozone economy, however, this figure may not be achieved, which could affect euro markets.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

US interest rate decision – no change likely

It was a reasonably quiet morning for the US dollar on Friday, with no major data releases. However come the afternoon we saw the US currency weaken against majority of currencies losing just under two cents against sterling and one cent against the euro.

We can expect a busy week starting on Tuesday, with Core Retails Sales and Producer Inflation data both expected to fall into negative territory. Wednesday we can look forward to Consumer Price Index (CPI) figures. A measure of inflation, the CPI is expected to show contraction. This will be followed by the US Federal Reserve Interest Rate Decision later that evening. No change is expected but the markets will be looking very closely at what is said post the meeting so as to gauge the possible timing of when US interest rates will next be increased. June is very much the timing favoured by the markets.

With the bulk of major releases due out in the middle of the week, we finish the week off with Consumer Sentiment in the US, which is expected to post a better than the previous month figure. Various Federal Reserve members will also be speaking which has the potential to impact US dollar markets.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Busy week for central banks

As well as the UK and US central banks meeting this week, we also have the central banks of Norway, Switzerland and Japan meeting. Japan (Tuesday) and the Swiss (Thursday) are unlikely to make any changes at their meetings. Norway, on the other hand, is expected to reduce their interest rate given the parlous state of their economy and their dependence on oil. This should weaken the Norwegian krone.

The Australian dollar had a strong end to the week last week as it gained against all major currency crosses, including 1.5% against the US dollar. Their Australasian counterparts also fared well alongside most commodity currencies, as analysts suggest the worst of the commodity rout is behind us. Looking forward to this week, we have the release of Australian monetary policy meeting minutes early on Tuesday. More importantly, we expect employment data on Thursday’ last month’s results fell below expectation, so markets will be poised around the uncertainty of a turnaround.

Are you looking to buy or sell currencies? Contact your trader now for live rates, news and currency purchasing strategies.

Trade balance data due from UK

A mixed week for sterling saw limited movement for the currency in the first part of the week, before it experienced significant swings against both the euro and US dollar on Thursday following the European Central Bank (ECB)’s interest rate decision.

A brief dip was seen on Tuesday following comments from Bank of England (BoE) Governor Carney regarding our European Union membership referendum, but effects throughout the market were muted. Wednesday saw the release of manufacturing production figures from the UK which revealed an increase of 0.7% throughout the industry in February.

Thursday brought the most significant movement for sterling though, initially strengthening against the euro whilst moving in the opposite direction versus the US dollar as the ECB cut its deposit interest rate to -0.4%. However, these trends were soon reversed, with sterling hitting a fresh three-week high against the US dollar as European Central Bank President Draghi talked down the prospect of further interest rate cuts.

A quiet day for economic data releases today as markets digest the events of yesterday. However, trade balance data from the UK will provide some interest, with a further slip into negative ground expected.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Euro moving with the ECB tide

Following days of anticipation, the euro moved with the tide of sentiment expressed by the European Central Bank (ECB) yesterday.

The central bank cut rates, as expected, slashing its benchmark interest rate to 0% and dropping the deposit rate to -0.4%. It also extended its bond purchases by €20 billion, from €60 billion to €80 billion per month. The announcement initially caused the euro to nosedive, as is usually the case when monetary policy is introduced or extended. However, ECB President Draghi detailed that the central bank does not expect to cut interest rates further following today’s round of cuts, news which helped support the euro and saw it strengthen significantly.

Friday sees German inflation data due. Other than that, markets are likely to be absorbing yesterday’s news.

If you are looking to buy or sell euro, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Euro moving with the ECB tide

Following days of anticipation, the euro moved with the tide of sentiment expressed by the European Central Bank (ECB) yesterday.

The central bank cut rates, as expected, slashing its benchmark interest rate to 0% and dropping the deposit rate to -0.4%. It also extended its bond purchases by €20 billion, from €60 billion to €80 billion per month. The announcement initially caused the euro to nosedive, as is usually the case when monetary policy is introduced or extended. However, ECB President Draghi detailed that the central bank does not expect to cut interest rates further following today’s round of cuts, news which helped support the euro and saw it strengthen significantly.

Friday sees German inflation data due. Other than that, markets are likely to be absorbing yesterday’s news.

If you are looking to buy or sell euro, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Euro moving with the ECB tide

Following days of anticipation, the euro moved with the tide of sentiment expressed by the European Central Bank (ECB) yesterday.

The central bank cut rates, as expected, slashing its benchmark interest rate to 0% and dropping the deposit rate to -0.4%. It also extended its bond purchases by €20 billion, from €60 billion to €80 billion per month. The announcement initially caused the euro to nosedive, as is usually the case when monetary policy is introduced or extended. However, ECB President Draghi detailed that the central bank does not expect to cut interest rates further following today’s round of cuts, news which helped support the euro and saw it strengthen significantly.

Friday sees German inflation data due. Other than that, markets are likely to be absorbing yesterday’s news.

If you are looking to buy or sell euro, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

UK exporters look to US import price data

It has been a quiet week for US data releases, with minimal major data released. On Thursday we saw the weekly unemployment claims drop further; other than that, most of this week’s movements have been dictated by both sterling and the euro.

Today, we will have the release of the import price data, which is expected to post disappointing figures yet again. This could contribute to the US’s worsening economic outlook, but any welcome surprises could help give the US dollar a boost.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Canadian unemployment data could boost currency

On Thursday, events elsewhere failed to grab headlines in the same way as monetary decisions made in Europe the same day. Canadian house prices held steady at 0.1% despite being expected to grow. The overall effect on the Canadian dollar was minimal as a result. Japanese manufacturing indexes forecasted for growth and this sort of movement would see some strength in the yen as a result.
Another quiet day is expected in the markets outside the US and Eurozone on Friday, with Canadian unemployment data likely to be the most significant data of the day. It is expected to show growth so we could see some added strength off the back of any releases made.

If you are looking to buy or sell currencies, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.